Zhangjiagang Guotai Zhida Special Equipment Co., Ltd announced a private placement of common shares for gross proceeds of CNY 59,000,000 on September 16, 2022. The transaction will include participation from existing investors Jiangsu Guotai Zijin Technology Development Co., Ltd for CNY 29,500,000 to retain 50% stake and Leader Harmonious Drive Systems Co., Ltd for CNY 29,500,000 for CNY 29,500,000 to retain 50% stake in the company. Post-closing, the registered capital will increase from CNY 56,000,000 to CNY 115,000,000.

The transaction has been approved in seventh meeting of the second board of directors and the seventh meeting of the second board of supervisors and does not need to be submitted to the general meeting of shareholders for deliberation.